Economic Reforms in Tanzania

Economic Reforms in Tanzania had been adopted in 1986 to combat the ongoing financial crisis of the country. Through this reform Tanzania was able to achieve macroeconomic stability which helped to drive the economic growth.

Reasons Behind the reform:

The average growth in Gross domestic product per annum had been very poor during the crisis period.

The amount of per capita income was decreasing which increased the poverty level.

The Government of Tanzania failed to ensure a sustained development and economic growth.

Reform Phases:

The economic reform in Tanzania had undergone through several phases. These are:

Tax Reform.

Public Sector Reform.

Financial Sector Reform.

Innovation in Rural Finance.

Telecommunications Sector Reform.

Cotton Sector Reform.

Effects of reform:

Through economic reform, Tanzania was able to solve the problem of poverty. A steady improvement in financial and economic performances had been achieved. Moreover, the application of structural reforms the government payed more attention to deliver the public services.

GDP growth increased significantly which drove the rise in per capita income in the rural and as well as urban areas. Another important effect of Tanzania's economic reform was it's transformation to a free market economy from a socialist one. In this scenario the main challenge of the government was to find the ways to implement economic reform on the provision of social services with a negligible opposite effect.

Dr Steinbock is an internationally recognized expert of the multipolar world. He focuses on international business, international relations, investment and risk among all major advanced economies and large emerging economies. In addition to advisory activities (www.differencegroup.net), he is affiliated with India China and America Institute (USA), Shanghai Institutes for International Studies (China) and EU Center (Singapore). For more, please see http://www.differencegroup.net/. Research Director of International Business at India China and America Institute (USA) and Visiting Fellow at Shanghai Institutes for International Studies (China) and the EU Center (Singapore).